Regulatory Alerts2022-07-11
Added · Updated
Revised Return of Capital Adequacy Ratio (Form MA(BS)3) Completion Instructions
Authorized institutions incorporated in Hong Kong using the standardized credit risk approach must complete Form MA(BS)3(IIIb) to report risk-weighted amounts for credit risk. The instructions define the scope of reportable exposures, including on-balance sheet and off-balance sheet items in the banking book, default risk exposures in the trading book, and specific market risk positions, while excluding those subject to capital deductions or reported in other forms. Detailed reporting arrangements are provided for exposure classification under thirteen standard classes, including specific rules for credit-linked notes, securities financing transactions, and collective investment schemes. The document also specifies how to apply External Credit Assessment Institution ratings and handle collateralized exposures, cash items, and residential mortgage loans.
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